During 2010, JAT Company purchased trading securities as a short-term investment. The costs of;the securities and their market values on December 31, 2012, are listed below.;Security Cost Market Value;(December 31, 2012);A $400,000 $200,000;B 200,000 225,000;C 500,000 600,000;JAT had no trading securities in the years before 2012. Before any adjustments related to these;trading securities, JAT had net income of $900,000 in 2012.;1. What is net income (ignoring income taxes) after making any necessary trading security;adjustments?;2. What would net income be if the market value of Security A were $350,000?
Paper#20355 | Written in 18-Jul-2015Price : $37